Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1887-12-07
PRESIDENTS MESSAGE.


tslative duties with condition of the national
finances which imperatively demands imme-
date and careful consideration.
The amount of money annually exacted,
through the operation OF present laws from the
industries and necessities of the people, largely
exceeds the sum necessary to meet the expenses
OF the government.
When we consider that the theory OF our insti-
buttons guarantees to every citizen the full en-
1oymeDt of all the fruits of his industry and en-
terpr1se with only such deduction as may be MS
share towards the careful and economical main
tenance of the government which protects him,
1t is plain that the exaction OF more than THIS 10
tndefensible extoTtion, and a culpable betrayal
of American fairness and justice: This wrong
1nhlcted upon those who bear the burden OF ma
uonal taxation, like other wrongs, mult1pl1es
brood of evil consequences. The pubic treas
ury, which should only exist as 8 CONDUIT con-
veying the peoples tribute to its legitimate CO.
Ject of expenditure, becomes hoardlng place
for money needlessly withdrawn from trade ana
ene peoples use thus GRIPPING our oIon1ont
preventing investment in productive enterprise,
threatening financial disturbance. and inviting
schemes of public plumber.
This condition OF our treasury is not altogether
new and it has more than once of late been sub
mitted to the peoples representatives In the Con-
gress, who alone can apply remedy. And yet
the situation still continues, with aggravated IN
ctdents more than ever presaging financial con-
vulsion and widespread disaster
1t Will not do to neglect this SITUATION because
its dangers not now palpably imminent and
apparent, They exist none the less certainly,
and await the unforeseen and unexpected occa-
upon us
On the SOth day of June, 1885, the excess of
revenues over public expenditures after comply
ing with the annual requirement of
THE SINKING FUND ACT,
was s aufig tne year en1 LEG 1u ne
and during the year ended June 80, 1887, 1t
reached the sum of SIS, 567 ,S4954
The annual contributions to the sinking fund
during the three years above specified, amount
ing in the aggregate to Sl3S % S,320.9 "a, and de-
Quoted from the surplus as stated, were made by
calling in for That purpose outstanding per
cent bonds of the government. During the six
months prior to June 80, 1887, the surplus reye-
nue. had grown 50 large by repeated accumula-
tons, and 1t was feared the withdrawal OF this
great sum Of money needed by the people would
affect the business of the country that the sum
ISIS, S64, 100 of such surplus was applied to the
payment or the principal and interest of the per
cent bonds still outstanding, and which were then
payable at the option of the government. The
precarious condition of financial affairs among
the people still needing relief Immediately after
the 30th day of June, 1887, the remainder OF the
3 per cent bonds then outstanding amounting
with principal and Interest to the sum OF SIS ST.
800, were called in and applied to the sinking
fund contribution for the current fiscal year.
Notwithstanding these operations OF the Treas
ury Department representations of distress in
business not only continued but increased, and
absolute peril seemed at hand. In these circum-
stances the )ntFib,ztion to the sinking fund for
the current fiscal year was at once completed by
the expenditure OF ST 684 2S3.55 in the purchase
of government bonds not yet due bearing and
AZ per cent. interest, the premium paid thereon
averaging about n per cent. for the former and
per cent. for the latter, In addition to this the
interest accruing during the current year upon
the outstanding bonded Indebtedness of the gov
eminent to some extent anticipated, and
banks selected repositories of public money
were permitted to somewhat increase their de-
posts.
While the expedients thus employed to release
to the people the money lying idle in the treas
ury, served to avert immediate danger
OUR sU RPLUS REVENUES
have continued to accumulate, the excess for the
present year amounting on the first day of De-
%10 3
the sum of Sll3 QUO 00C on the Seth of June next,
at which date it is expected that this sum- added
to prior accumu stions, will swell the surplus in
the treasury to $40, ZOO, 600.
There seems to be no assurance that, with such
8 withdrawal from use of the peoples circulating
medium, our business community may not in the
near future be subjected TO the same distress
which was quite lately produced from the same
NauSe. And while the functions of our national
uNasury should be few and simple and while its
best condition would be reached, l believe, by
its entire disconnection with private business in
terests yet when, by a perverson of its purposes,
1t IDLY holds money useleSsly subtracted from
the channels OF trade. there seems to be reason
for the claim that some legitimate means should
De CeVlsed by the government to restore in an
emergency, without waste or extravaganza, such
money to its place among the people.
Ii such an emeI gency arises there now exists
no clear and undoubtcd executive power of re-
lief. Heretofore the redemp ion of 5 per cent
bonds. which were payable at the option of the
government, has afforded q means for the dis
bursement of the excess of our revenues; but
these bonds have all been retired and there are
have the right to insist upon. The contribution
to the sinking fund which furnishes the occa-
sion for expenditure in the purchase OF bonds has
been already made 1Or the current year, so that
there is no outlet in that direction. In the pres
ent state of legislation the o1ly pretense of any
existing executive power to restore, at this time
any part of cur surplus revenues to the people
by its expenditure consists in the suppOsit1on
that the secretary of the treasury may enter the
market and purchase the bonds OF the govern
ment not yet due, at rate of premium to be
agreed upon. The only provision of law from
which such
POWER COULD BE DERIVED
is found in an appropriation bill passed num-
Der of years ago; and it is subject to the suspi-
c1on that it as intended temporary and linn
tied IN Its application, instead of comforting
continuing discretion and authority. No condi-
ton ought TO exist which would justify the grant
OF power to single official, upon his judgment
OF lis necessity, to withhold from or release to
the business OF the people, in an unusual manner
money held ia the treasury, and thus affect at
his will, the financial situation of the country;
and it it IS deemed to lodge in the secretary
of the treasury the authority in the present
Juncture TO purchase bonds, it should be plainly
vested and provided as lar possible, with such
checks and limitations viii define this Off
c1als right and discretion, and at the same time
relieve him from undue response bity.
ii considering the question of purchasing
bonds as q mean of restoring to circulation the
surplus money accommodating in the treasury, it
should be borne in mind that premiums must of
course Dc paid upon such purchase, that there
may be large part or these bonds held as in
Yeslments which cannot be purchased at any
price ana that com binationS among holders who
are willing to sell, may unreaSOna bly, enhance
the cost OF such bonds TO the government.
1t has been suggested that the present bonded
debt might be refunded at less rate of interest
and the difference betwe the old and new Sc
curlty paid in cash, thus finding use for the sur
plus in the treasury, The success of this PLAN it
is apparent, must depend upon the vol1tion OF
the
HOLDERS OF THE PRESENT BONDS;
and 1t not entirely certain that the induce
ment which must be offered them would result
IN more financial benefit to the government than
the purchase Of bonds, while the latter PROPOSE
ton would reouce the principal OF tie debt by
actual payment, instead of extending 1t.
The proposition to depoS the money held by
the government III banks through out the country
tor Use by the people. is, il seems to me- exceed
ngy Objectionable in principle, as estab ishing
too close relationship between the operations OF
the government treasury and the business of the
country and TOO extensive cOmming ling of their
money thus fostering an unnatural reliance in
private business upon public funds. If this
scheme should be adopted IL should only be done
as temporary ex pedient to meet an urgent ne
cessily. Legislative and executive effort should
generally be in the opposite direction and should
have tendency to divorce, as much and as last
as can safely be done, The treasury department
from private enterprise. OF course, it is not ex-
Deetc0 thai and